[Congressional Record Volume 167, Number 194 (Thursday, November 4, 2021)]
[Senate]
[Page S7988]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4491. Mr. RISCH submitted an amendment intended to be proposed to 
amendment SA 3867 submitted by Mr. Reed and intended to be proposed to 
the bill H.R. 4350, to authorize appropriations for fiscal year 2022 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle E of title XII of division A, add 
     the following:

     SEC. 1253. ANNUAL REVIEW ON THE PRESENCE OF CHINESE COMPANIES 
                   IN UNITED STATES CAPITAL MARKETS.

       (a) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Foreign Relations of the Senate;
       (B) the Select Committee on Intelligence of the Senate;
       (C) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (D) the Committee on Foreign Affairs of the House of 
     Representatives;
       (E) the Permanent Select Committee on Intelligence of the 
     House of Representatives; and
       (F) the Committee on Financial Services of the House of 
     Representatives.
       (2) PRC.--The term ``PRC'' means the People's Republic of 
     China.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, and annually thereafter for the 
     following 5 years, the Secretary of State, in consultation 
     with the Director of National Intelligence and the Secretary 
     of the Treasury, shall submit an unclassified report to the 
     appropriate committees of Congress that describes the risks 
     posed to the United States by the presence in United States 
     capital markets of companies incorporated in the PRC.
       (2) Matters to be included.--The report required under 
     paragraph (1) shall--
       (A) identify companies incorporated in the PRC that--
       (i) are listed or traded on at least 1 stock exchange 
     within the United States, including over-the-counter market 
     and ``A Shares'' added to indexes and exchange-traded funds 
     out of mainland exchanges in the PRC; and
       (ii) based on the factors for consideration described in 
     paragraph (3), have knowingly and materially contributed to--

       (I) activities that undermine United States national 
     security;
       (II) serious abuses of internationally recognized human 
     rights; or
       (III) a substantially increased financial risk exposure for 
     United States-based investors;

       (B) describe the activities of the companies identified 
     pursuant to subparagraph (A), and the implications of such 
     activities for the United States; and
       (C) develop policy recommendations for the Federal 
     Government, State governments, United States financial 
     institutions, United States equity and debt exchanges, and 
     other relevant stakeholders to address the risks posed by the 
     presence in United States capital markets of the companies 
     identified pursuant to subparagraph (A).
       (3) Factors for consideration.--In completing the report 
     under paragraph (1), the Secretary of State shall consider 
     whether a company identified pursuant to paragraph (2)(A)--
       (A) has materially contributed to the development or 
     manufacture, or sold or facilitated procurement by the 
     People's Liberation Army of the PRC, of lethal military 
     equipment or component parts of such equipment;
       (B) has contributed to the construction and militarization 
     of features in the South China Sea;
       (C) has been sanctioned by the United States or has been 
     determined to have conducted business with sanctioned 
     entities;
       (D) has engaged in an act or a series of acts of 
     intellectual property theft;
       (E) has engaged in corporate or economic espionage;
       (F) has contributed to the proliferation of nuclear or 
     missile technology in violation of United Nations Security 
     Council resolutions or United States sanctions;
       (G) has contributed to the repression of religious and 
     ethnic minorities within the PRC, including in Xinjiang 
     Uyghur Autonomous Region or Tibet Autonomous Region;
       (H) has contributed to the development of technologies that 
     enable censorship directed or directly supported by the PRC 
     government;
       (I) has failed to comply fully with Federal securities laws 
     (including required audits by the Public Company Accounting 
     Oversight Board) and ``material risk'' disclosure 
     requirements of the Securities and Exchange Commission; or
       (J) has contributed to other activities or behavior 
     determined to be relevant by the Secretary of State.
       (c) Report Form.--The report required under subsection 
     (b)(1) shall be submitted in unclassified form, but may 
     include a classified annex.
       (d) Publication.--The unclassified portion of the report 
     required under subsection (b)(1) shall be made accessible to 
     the public online through relevant United States Government 
     websites.
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